Brokerage Firm Investigation: Madyson Capital Management

Madyson Capital Management is a real estate investment firm based in Denver, Colorado. As the company informed actual and prospective investors through its required Securities and Exchanges Commission (SEC) disclosures, the business plan was to “purchase multi-family properties and senior living care facilities that have potential to be or are cash flow positive.”

In reality, officials now believe that this investment firm was a fraud. As reported in the Denver Post, Madyson Capital Management and related companies took in more than $13 million from investors. Yet, instead of purchasing cash flow positive properties, most of the investor money was simply siphoned off by the firm’s owner, Joseph Ryan.

In November, an injunction was granted against Madyson Capital Management and a receiver was appointed to handle claims. The Colorado Department of Regulatory Agencies reports that the firm’s assets have been frozen and that Joseph Ryan has been ordered to turn over all information related to the company.

Brokers Can Be Held Liable for Unsuitable Investment Recommendations

Unfortunately, some investors have been tangled up in the Madyson Capital Management fraud because of recommendations made by their registered broker. Under securities industry rules, brokers have a legal responsibility to ensure that they are not pushing customers into unsuitable investment opportunities.

Investment advisors must perform adequate due diligence on companies like Madyson Capital Management. If you lost money due to unsuitable investments, you may be entitled to compensation from your broker or brokerage firm.

Get From a Securities Fraud Lawyer Today

At Sonn Law Group, we have fiercely advocated for investor rights for almost three decades. If you sustained illegitimate investment losses, whether due to fraud or broker negligence, we can help. For a risk-free initial consultation, please contact our law office today.

Disclaimer: This article contains opinions and NOT statements of fact in any way whatsoever. The information here is general information that should not be taken as legal advice. NO attorney-client relationship is established between you and our attorneys by reading this article. This article is attorney advertising and should not be used as a substitute for legal advice from a qualified securities lawyer.